Japanese companies ‘to make strong profits due to weak yen’

<p>The weak yen could be good news for Japanese firms.</p>

Japanese firms are likely to be announcing strong profits as a result of the weak yen.

This is the view of Shogo Maeda, head of Japanese equities at Schroders, who stated that the much-publicised policy of prime minister Shinzo Abe – which has been dubbed Abenomics – has been a success for companies in the Asian nation.

He noted both share prices and bottom lines have got a boost as a result of the yen weakening against the dollar in the last few weeks.

"A weakening yen has given previous anaemic GDP numbers a much-needed boost," said Mr Maeda, adding: "Economic data released last week showed that Japan's economy grew at an annualised 3.5 per cent in the first quarter."

Hideki Matsumura, from the Japan Research Institute, recently told BBC News that he believes the Japanese economy is now on the right track for recovery.

Japanese GDP rose by almost one per cent in the first quarter of the year.

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